Mission Capital Advisors has welcomed Melanie Herald to the company’s Debt and Equity Finance Group, where she will serve as managing director. In this new role, Herald will be responsible for originating and structuring real estate capital for property owners, investors and developers.
Based out of the firm’s Miami office, she will oversee sourcing, evaluating, structuring and executing the sale of loans and commercial real estate assets on a national level.
Herald joins Mission Capital Advisors from Sienna Capital Partners, a boutique investment banking firm, where she served as principal and was involved in sourcing and structuring equity investments. Prior to that, Herald was senior vice president at multifamily fund Urban American Management, where she oversaw all aspects of the company’s capital markets activity.
INDUSTRY VETERAN
Herald will continue to work as a consultant with Urban American. As part of her extensive background, she spent nearly a decade at Goldman Sachs, where she focused on RMBS, CMBS, derivative, whole loan and other real estate debt product trades.
“Melanie has developed a wide range of lender and investor connections throughout the country. In addition, her professional background in capital raising, institutional sales and investor relations will contribute to our business origination efforts,” said David Tobin, principal at Mission Capital, in prepared remarks. “Melanie brings to the table a unique professional background that has given her intimate knowledge of the needs of CRE investors,” added Principal Jordan Ray, head of the firm’s debt and equity practice.
Herald holds a Bachelor of Arts degree from Bowdoin College in Brunswick, Maine, as well as an MBA in general management from Cornell University.
Mission Capital Advisors has hired Melanie Herald as managing director, focusing on sourcing and originating lending and loan-sales opportunities.
Herald joins the New York firm’s Miami office from Urban American Management, where she oversaw capital markets activities. She’s previously held positions with New York boutique investment bank Sienna Capital Partners and Goldman Sachs, where she was vice president and handled trading of residential mortgage backed securities, CMBS, whole loans and other real estate-related debt.
Herald will focus, in part, on the South Florida market, where Mission Capital has handled more than $3 billion of deals over the past seven years.
See more at: http://www.crenews.com/general_news/general/mission-capital-adds-capital-markets-pro.html
Director Beau Williams and Vice President Raymond Salameh Join National Capital Markets Advisory
Mission Capital Advisors today announced the hiring of Beau Williams as director and Raymond Salameh as vice president in the firm’s Debt and Equity Finance Group. Both professionals will be based in Mission’s New York City headquarters, and will be responsible for the origination, structuring and placement of commercial real estate capital on behalf of owners, investors, developers, family offices and private equity firms nationwide as well as assisting on select asset sales opportunities. Williams and Salameh will structure financing and asset sales for the firm’s clients across the hospitality, retail, office, multifamily and industrial sectors.
“Beau’s hospitality finance experience throughout his career was extremely attractive to us as we look to build on our strengths and continue expanding our team,” said Jordan Ray, principal of Mission Capital’s Debt & Equity Finance Group. “We look forward to leveraging Beau’s experience to remain a frontrunner in this space.”
Prior to this position, Williams was with Meridian Capital Group, where he focused on hotel debt and equity. In his time at Meridian, Williams executed over $200 million in hotel financings. Earlier in his career, Williams served as a director with both Wyndham Hotel Group and Northcott Hospitality. He graduated from New York University with a Bachelor of Arts in Communications.
“Mission Capital’s culture is extremely unique, and I knew from the very start that my input would be valued,” said Williams. “I consider Mission somewhat of an anti-brokerage, an organization where each individual is recognized as a valued member of a unified team. I’m eager to work alongside the best and brightest in the industry to secure capital for some of the most innovative hospitality projects out there.”
Salameh was formerly a senior associate at HKS Capital Partners, where he focused on originating and structuring real estate capital for corporate clients, real estate developers and investors. Over the course of his career, he closed approximately $160 million of capital across several asset classes. Salameh graduated from Binghamton University’s School of Management with a Bachelor of Science in Finance and Management.
“Mission Capital has a reputation as a collaborative, technology-driven debt and equity brokerage, and I was eager to join this growing platform and help contribute to their expansion,” added Salameh.
Under the leadership of Ray and Mission Capital Founder and Principal David Tobin, Mission Capital’s Debt and Equity Finance Group has expanded within the past few years from a two-person team into a national mortgage and equity powerhouse with 25 professionals, approximately $2 billion in annual volume, and activity in every major market.
“Both Beau and Raymond are exactly the type of professionals that we look for – extremely driven and the best at what they do,” said Tobin. “The market expertise they bring to the table will be a major asset for Mission as we continue our national expansion.”
Mission Capital’s Jordan Ray was named one of RE Forum’s Fifty Under 40 for 2017.
Commercial real estate used to be a niche field in terms of career trajectories. If it wasn’t a family business, a young professional typically found him or herself in the industry by accident. Yet thanks to the growth of CRE-specific higher education programs, the discipline has become a leading career choice.
And thank goodness for that, since it’s attracted some of the best and brightest talent of the latest generation. This was evidenced in the hundreds of nominations we received for Real Estate Forum’s most recent “50 Under 40” feature. These remarkable, high-achieving and innovative young professionals made their marks in various ways, from closing billions of dollars’ worth of transactions to creating products that promise to alter the way we do business.
The finalists also exhibited a unifying commitment to professional growth, be it their own or that of others, through mentoring students and younger colleagues or focusing on clients’ individual needs. In addition to earning reputations for intelligence, diligence and client dedication, many of the candidates exhibited an uncommon drive in caring about humanitarian causes. One rode a bicycle cross country to raise money for lung cancer research, another presides over one of the largest NGOs promoting literacy in India and one even rappelled the Omni Building in Nashville for Big Brothers Big Sisters.
The diverse strengths and accomplishments demonstrated by the young women and men who made it into this year’s roster provide an encouraging glimpse into the future of the industry.
Jordan G. Ray, 38 Principal Mission Capital Advisors New York City
Possessing a remarkable proficiency in securing capital for a wide range of real estate projects, Jordan Ray was instrumental in building out Mission Capital Advisor’s finance desk, which operated as just a two-person team when he took over. Founder David Tobin, who had firmly established Mission Capital’s commercial and residential loan operations, partnered with Ray to start a “counter-cyclical” hedge to the loan sale business, with a unit raising capital for CRE investors in a technologically progressive way. Working with the firm’s in-place infrastructure, Ray helped create a well-rounded company with both cyclical and counter-cyclical business lines. Under his guidance, the finance desk has grown into a national mortgage and equity brokerage that employs 22 professionals, closes approximately $2 billion in annual deal volume and is active in every major US market.
The commercial real estate market is awash with capital at the moment, but its not only the industry vets that are closing deals and blazing trails.
Commercial Observer’s 25 Under 35 list showcases the industry’s top debt originators and brokers under the age of 35. Mission Capital‘s Jamie Matheny (Vice President, Debt & Equity Finance Team) has been included in the list.
For over 30 years two federal laws, the Truth in lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) have required lenders to provide two separate disclosure forms to consumers applying for mortgage loans, at or before closing. These disclosures had overlapping information and inconsistent language that consumers found to be confusing. In 2015, the Consumer Financial Protection Bureau (CFPB) integrated the mortgage loan disclosures under TILA and RESPA, currently known as the TILA-RESPA Integrated Disclosure rule (TRID).
Since TRID’s inception, lenders have expressed difficulty selling TRID loans on the secondary market due to investor concerns over potential liability for minor errors. The CFPB stated that enforcement efforts in the beginning were focused more on lenders making good faith efforts to comply with the new rules; however, investors’ concerns on the other hand revolved around potential statutory and assignee liability. TRID loans have undergone strict reviews by regulators and due diligence providers with high error rates in the first year and a half since inception. Initially it was reported that over 90 percent of the loans reviewed contained TRID errors.
Industry participants have interpretative disagreements with various aspects of the law, and TRID loans are scrutinized more closely as they make their way through securitizations. Lack of regulatory cures and out-of-date statutory cures remain key issues. Regulatory cure provisions under Regulation Z only provide cures for non-numeric clerical errors and increases in closing costs. They lack the cure provisions for numerical clerical errors that cause liability concerns inhibiting secondary market investors from purchasing TRID loans initially deemed out of compliance.
The statutory cure provision resides in Section 130(b) of the Truth in Lending Act (TILA) that protects the lender, or assignee of the loan, from liability. The cure provisions in 130(b) are outdated, and focus primarily on refunding under-disclosed APRs and finance charges. However, 130(b) cure provisions are currently utilized on numerical errors that cannot be cured through the regulatory cure mechanism. Due Diligence firms have started using 130(b) cure provisions on numeric TRID violations that have “potential statutory liability” to cure incurable unsaleable loans. It is ultimately left up to the investors to either accept the Section 130(b) cures for numerical clerical errors on TRID loans, or have them remain incurable saleable loans. Industry participants and due diligence firms have started to adopt the 130(b) cure provisions in their loan reviews.
The CFPB recently issued TRID 2.0 final rules that have updated TRID regulations that become mandatory on October 1, 2018. The CFPB clarifications should put to rest many of the interpretative disagreements with the law to allow market participants and Due Diligence firms to be more aligned in their compliance reviews. Some of the significant changes with TRID 2.0 include clarification of no tolerance fees, construction loan disclosures, written provider lists, re-disclosures after rate lock, and cost reductions after initial LE. For the most part, overall reaction to these changes has been positive because the CFPB addressed many uncertainties in the original rule that pertained to assignee liability. However, others in the industry have been disappointed that additional cure provisions for violations were not included.
Mission Global delivers custom solutions to our clients for TRID reviews by leveraging our deep transactional experience, proprietary technology, subject matter expertise and best-in-class talent. Click here to learn more.
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Interim financing will enable developer to complete construction, ramp property occupancy
Mission Capital Advisors today announced that its Debt and Equity Finance Group structured $18.5 million of non-recourse bridge financing for The Falls, a 116-unit luxury apartment community located in Hudson, New York. The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community. The Mission Capital team of Rob Beyer, Ari Hirt, Steven Buchwald, Alex Draganiuk, David Behmoaras and Justin Hunt secured the financing on behalf of JMS Construction.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it into the region’s premier luxury apartment community. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a full fitness center, walking trails, wine cellar, a spinning/yoga studio, a 30-seat movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
“The Falls will be the premier residential community in the region; however, the lack of comparable product was something of a challenge,” said Beyer. “In recent years, Hudson has become a popular weekend retreat for New Yorkers, and many empty nesters have begun eyeing the area as a potential relocation spot because of its vibrant arts and culture scene and the accessibility it offers to New York City and Albany. By stressing the area’s increasing allure, we were able to attract numerous non-recourse bids for the sponsor, ultimately securing an attractive loan from Walker & Dunlop.”
Added Hirt: “There is a considerable amount of bridge capital in the market, and we were able to communicate the project’s short path to stabilization, which enabled us to generate strong lender interest. The sponsor was looking for interim financing as they complete construction and ramp up occupancy, and we structured a favorable deal with Walker & Dunlop that will enable JMS to secure a permanent loan once the property is stabilized.”
JMS is a family-owned real estate developer and owner based in Hudson. The firm owns nine apartment properties in the area, including two in Hudson, and will oversee The Falls’ leasing and management. Notably, the company’s corporate office is located on-site at The Falls.
Mission Capital Advisors has a strong pipeline of activity and is extremely active in arranging financing for office, industrial, multifamily, retail and self-storage properties across the country.
Mission Capital Advisors secures $18.5M for The Falls in Hudson, NY
The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community.
The Mission Capital team of Rob Beyer, Ari Hirt, Steven Buchwald, https://www.missioncap.com/team/?member=adraganiuk, David Behmoaras and https://www.missioncap.com/team/?member=jhunt secured the financing on behalf of JMS Construction.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a fitness center, walking trails, wine cellar, a yoga studio, movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
The loan, which was provided by Walker & Dunlop, will retire the existing construction loan and will provide the sponsor with additional proceeds to complete construction of the community.
JMS acquired the 22-acre property – formerly the Greenport Elementary School – in 2015, with plans to redevelop it. When complete, the community will comprise four interconnected buildings, featuring indoor and outdoor pools, a fitness center, walking trails, wine cellar, a yoga studio, movie theater, event space and a first-class spa complete with sauna, steam room and salt room.
The Commercial Observer featured a Q&A with Mission Capital’s Jordan Ray.
Jordan Ray is the principal of Mission Capital’s debt and equity finance group, where he oversees business development, strategy, placement and execution of real estate capital. His responsibilities also include sourcing and executing loan sales across the U.S. Most recently, the brokerage arranged $20 million in equity for 146 rent-regulated condominium units at 733 Amsterdam Avenue on the Upper West Side.
View the full publication here: [PDF]
View the Q&A directly here: [PDF]
Jordan Ray
PRINCIPAL OF THE DEBT AND EQUITY FINANCE GROUP AT MISSION CAPITAL
By Guelda Voien
Jordan Ray is the principal of Mission Capital’s debt and equity finance group, where he oversees business development, strategy, placement and execution of real estate capital. His responsibilities also include sourcing and executing loan sales across the U.S.Most recently, the brokerage arranged $20 million in equity for 146 rent regulated condominium units at 733 Amsterdam Avenue on the Upper West Side.
Commercial Observer: Tell us about your start at Mission Capital. Jordan Ray: When I came to Mission, it was 2009, and the world was ending. A great friend and ex-colleague of mine had joined Mission first because he knew David Tobin (principal of Mission Capital] from years back. I was invited to join and sell loans but ultimately started financing deals when the market came back again. Iwalk into this office at 584 Broadway, and it’s 2oo feet creaky wood floors and a bunch of people sitting around a trading desk with five monitors. I came from a brokerage business where I would fight every five years to get a 15-inch monitor upgrade, as a half-nerd-well, a full nerd actually. But I came into the office, and there was just this buzz. Selling distressed loans in a downturn is a good business. Commercial Observer: How does Mission’s business differ from other brokerages? Jordan Ray: What Mission did before I joined was make the decision to invest time and money to build out existing technology. When you’re selling large pools-we’d sell half-a-billion-dollar pools of $2 million to $3 million dollar credits throughout the Midwest and the southwest there are a lot of loans and 20 to 30 investors looking at each one. It’s a really hard set of data to manage-you can’t really do that in Excel. Mission embraced [customer relation ship management platform] Salesforce and brought in data analysts, and we have a also have a chief investment officer, Peter Shankar. What other small brokerage firm has a CIO, right? So to be able to build out layers on top of Salesforce that we use to track investors on every transaction…looked at this, and I was like, “Wow, I was doing mortgage distributions in Excel and sending around a spread sheet [previously]!” So it’s not groundbreaking, but large organizations don’t have the ability to make these changes in our business. While they’ll always do a lot of business in our market because they control the investment sales market, we’ve been really good at carving out a niche as strong players in the hospitality business and the construction side of the business, as well as storage deals and transitional stuff. When we get in there we stick, because people like our process and how we think about things. We may bolt on investment sales people at some point, but for now we’re growing the hub and spoke mentality of bringing in business from multiple places. Commercial Observer: Is the majority of your business in New York? Jordan Ray: New York City is a huge place, and there are lots of worthy competitors here. But if you go to Seattle, Los Angeles,Chicago,I can’t really say the same thing.We’ve always done a ton of business in south Florida.We probably havedone more vol ume there than people who work there,and weare going to open a Miami location soon.We’re trying to do the same in Chicago-we’ve done so many hotels and apartments there and we follow the equity investors there. In L.A. we have an office in Newport Beach, but we’re actually going to open a Santa Monica office in the next few months. What is the office work environment like? We all come from places that are classic brokerage environments. This industry is rife with internal competition-some would argue that’s a good thing because it makes everyone fight for business and get off their ass and go get it, but we’re not those some. Where everything is shared from business development efforts to execution of transactions. You can have an office here if you want one, but most people don’t. They want to be in the mix and in the flow. We have these little (conference) call rooms and I float in and out with my laptop.Now and again I have this Steve Harvey stick [with a photo of Steve Harvey] that I hold up…Did you ever read the article about when he basically told his staff to fuck off? The internet was in uproar about how rude he was. Steve Harvey [sent a memo to his talk show staff telling them) to leave him alone when he was backstage. We all have one here, and if my Steve Harvey stick is up, it means go away. People will come up to me at anytime, unless my Steve Harvey stick is up (laughs]. Commercial Observer: How many people work for Mission at this point? Jordan Ray: We’re 30 on the finance side, 30 on the commercial loan side plus another 20 in the company on the residential and Mission Global side.I’m on the financing side exclusively. Commercial Observer: What’s next for Mission? How do you keep your edge? Jordan Ray: Unless Amazon gets into the mortgage broker age business, I don’t expect the big national [brokerages] to change their business overnight and say we’re going to have a centralized [system] and teach 6s-year-olds who make decisions over there how to use Salesforce-it’s just not going to happen. So there’s a lot of runway to grow our market share.
ABC Properties received $20 million in equity finance to help pay for its purchase of 146 rent-regulated condominiums at 733 Amsterdam Ave., a luxury residential property in Manhattan. Mack Real Estate Credit Strategies also provided the buyers with a $55-million acquisition loan.
“Our client, Myles Horn of ABC Properties, was seeking to acquire this well-appointed property with significant upside, and we were able to run an exclusive JV equity process in a very short timeframe to bring in a partner that would enable him to move forward with the transaction,” stated Jeff Granowitz, managing director with Mission Capital Advisors, which represented ABC Properties in the equity transaction.
Constructed in 1971, the property — which is also identified as 175 W. 95th St. — is a 27-story, 229-unit multifamily building. In 2015, the seller, Starrett Corp., converted the building to condominiums and embarked on a significant capital improvements campaign. Since then, more than 80 of the condominiums have sold.
Mission Capital arranges financing for Manhattan condo buyout
September 7, 2017
Mission Capital Advisors has arranged $20m of equity financing for the acquisition of 146 rent-regulated condominiums at 733 Amsterdam Avenue, a luxury multifamily property on Manhattan’s Upper West Side. The equity, provided by Meadow Partners, joins a $55m acquisition loan provided by Mack Real Estate Credit Strategies to buyer ABC Properties.
Jason Parker and Jeff Granowitz, managing directors of Mission Capital’sDebt and Equity Financing Group,represented Myles Horn of ABC Properties in establishing the joint venture partnership, which purchased the building from seller Starrett Corp. “Operating partners in real estate typically leverage their expertise to get joint venture equity partners looking to place money behind seasoned operators,” said Parker.
Constructed in 1971, the property – which is also identified as 175 West 95 Street – is a seven-story, 229-unit multifamily building and was last renovated in 2015, when Starrett converted the building to condominiums. As part of that push, the seller embarked on a significant capital improvements program, which included refreshes to the entryway, terraces, and common areas.
As part of ABC’s capital improvement plan, the firm plans to acquire, renovate, and convert the remaining rental units to luxury condos. “ABC will go about the process of trying to get apartments vacant through buyouts, secondary offerings and normal turnover. Upon vacating apartments, ABC will improve each unit with luxury upgrades and sell at market prices,” said Granowitz.
Parker added that the acquisition was made at a substantial discount due to the uncertainty that comes with executing a conversion. According to published reports, Starrett had initially marketed the units for more than $105m. “You never know how long it will take to turn the units,” he said. “That’s where Myles’ expertise comes in, in running this day-to-day process.”
In a separate transaction in the first quarter of 2017, ABC Properties purchased a $25m non-performing loan secured by the co-op shares relating to 262 apartments at Skyview on the Hudson in Riverdale, N.Y. Mission Capital advised the loan’s seller in that deal. “Mission had a great experience with ABC on both transactions,” Parker added. “Myles and ABC have consistently been able to execute their value-add business plan and unlock the hidden potential of condominium properties.”
Mission Capital Arranges $20M Equity Stake for Upper West Side Condos Buy
August 29, 2017
Mission Capital has arranged $20 million in equity for 146 rent-regulated condominiums at 733 Amsterdam Avenue on the Upper West Side, Commercial Observer can first report.
SEE ALSO: Flower Power: The Life and Times of Lotus Capital Partners’ Faisal Ashraf
The equity injection was provided by Meadow Partners, according to a source familiar with the deal, and was provided in addition to $55 million in debt from Mack Real Estate Credit Strategies, for a total investment of $75 million.
Jason Parker and Jeff Granowitz, managing directors of Mission Capital’s debt and equity finance group, arranged the transaction on behalf of investor and developer Myles Horn of ABC Properties, who sourced the deal on the 229-unit Axton building condos. Horn then brought in Mission Capital to find a joint venture partner, a source with knowledge of the deal told CO.
“Our client, Myles Horn of ABC Properties, was seeking to acquire this well-appointed property with significant upside, and we were able to run an exclusive [joint venture] equity process in a very short timeframe to bring in a partner that would enable him to move forward with the transaction,” Granowitz said in prepared remarks.
A spokeswoman for Horn and ABC Properties declined to comment on the transaction, and Mission Capital declined to comment beyond the release on the details of the financing.
“Myles and ABC have consistently been able to execute their value-add business plan and unlock the hidden potential of condominium properties,” Parker said in prepared remarks. “This is a trophy-type property in one of New York’s most attractive neighborhoods, and Myles recognized the significant potential that this condo package presented.”
Meadow purchased the condos for a discounted $61.3 million from lister Starrett Corp. earlier this month, property records show, using the Mack Real Estate Credit Strategies’ $55 million loan to finance the acquisition. Meadow acquired the units at a near 40 percent discount as Starrett had initially asked for more than $105 million when the block hit the market last year, according to The Real Deal.
Listing broker Mark Zborovsky declined to comment on either transaction.
The 28-story rental building, which has an alternate address of 175 West 95th Street, was constructed in 1971. Starrett converted the property into a multi-family condominium in 2015, and went to work with renovations that include a revamped entryway, terraces and common areas, according to information from a news release detailing the transaction. The building also features a 24-hour concierge, a new fitness center, a children’s play space and a lounge.
ABC Properties has planned additional capital improvements to both common areas and apartment interiors.
Officials at Starrett Corp. did not immediately return a request for comment. A spokeswoman for Meadow Partners declined to comment on the deal.
Since the end of the financial crisis, Midtown South has been one of the fastest growing sub-markets in Manhattan due to the large influx of Technology, Advertising, Media, and Information (TAMI) tenants migrating to the market. Silicon Alley, New York’s version of Silicon Valley, is the area just north of Union Square renown for its concentration of TAMI tenants. As tenants continue to relocate to Midtown South, Silicon Alley continues to grow. There has been a 75.5% increase in tech jobs from 2001 to 2015. In fact, the overall tech industry accounts for more than 291,000 jobs and produces more than $124.7 billion in economic output according to New York City’s Economic Development Corporation. Venture capital funding for tech has begun to taper due to growing economic and political uncertainty causing funding to focus on later stage tech companies, many of which are located in the Midtown South market.(1)
Office leasing activity in the area has gained momentum in the first quarter of 2017, reaching pre-recession levels of 1.32 million square feet. Developers have delivered more than 600,000 square feet of new development to the submarket’s inventory, causing net absorption of -16,000 square feet. The predominant Midtown South office inventory tends to be located in pre-war buildings, often with loft or open-space features, a hodge-podge of HVAC systems and less than optimal power/connectivity. As such, the submarket should quickly absorb the abundant amount of space coming online within the next few quarters as the demand for Class A or B “technologically sufficient” space grows.(2)
Union Square has managed to capture more than 50% of all Manhattan tech leasing for the sixth consecutive year, according to Colliers International. Most notably, WeWork has signed three leases in the area with the capacity to host almost 3,000 co- working members. IBM signed a landmark membership deal for the entire WeWork building at 88 University, a transaction financed by Mission Capital in 2016. The co-working space is roughly 70,000 SF across 8 floors and will support nearly 600 IBM employees.
(1) JLL US Technology Office Outlook
(2) CBRE Midtown South Manhattan Office, Q1 2017
In combination with the private sector, local government support from Mayor Bill de Blasio has also played a crucial role towards the explosive growth of the Midtown South submarket, as the city has committed $250 million towards a new hub to support the area’s thriving tech and innovative start-up scene. The anchor tenant to the project will be Civic Hall and will include a collaborative work and event space that will be used for the advancement of technology for the public. The facility is estimated to create 600 tech jobs and host digital trainings for thousands of New Yorkers.(1)
Recent Leases (2)
Date
Type
Tenant
Size (SF)
Address
Q2 2016
New
Facebook
200,000
225 Park Ave. South
Q2 2017
Expansion
Compass
115,000
90 5th
Q3 2015
Expansion
Pandora
104,000
125 Park Ave. South
Q1 2017
New
Live Nation
99,588
430 West 15th St.
Q3 2016
New
WeWork
96,000
33 Irving Place
Q2 2017
New
WeWork
94,740
205 Hudson St.
Q2 2017
New
MAC Cosmetics
86,524
233 Spring St.
Q3 2015
New
WeWork
82,000
88 University Place
Q3 2016
New
Capital One
78,000
11 West 19th St.
Q1 2016
Renewal
Perkins Eastman
77,000
115 5th Ave.
Q4 2015
Ren. & Exp.
L’Oreal USA, Inc.
59,345
261 Eleventh Ave.
Q3 2015
New
One Kings Lane
51,576
315 Hudson St.
Q2 2017
New
Argo Group US
46,530
431 West 14th St.
Q2 2016
New
Casper
32,300
230 Park Ave. South
Q1 2017
New
Teacher Synergy
27,000
111 East 18th St.
Q2 2017
New
Glossier
26,164
161 Avenue of the Americas
Q1 2017
New
Pentagram
24,000
204 5th Ave.
Q2 2015
New
Regus
23,000
112 West 20th St.
Q1 2016
Renewal
DeVito Verdi
22,000
100 5th Ave.
Q2 2016
New
Verve
21,500
79 5th Ave.
Q1 2017
New
Cosnova, Inc.
11,913
55 5th Ave.
Q2 2017
New
Ceros, Inc.
11,000
40 West 25th St.
Q3 2017
Renewal
DataMinr
8,264
99 Madison Ave.
Midtown South is the top performing market in Manhattan for condo sales in Q1 2017 by median price and average price per square foot; however, overall performance still trails previous years. In the first quarter, Midtown South closed 913 sales with a median price of $1.6M and an average price of $2,340 PSF. There were 1,788 new condos that came online, a 25% increase from last year. The 4% decrease in number of condo sales coupled with the increase of inventory from last year has increased supply and average time on the market. Although the average number of days on the market (98 days) increased, Midtown South is still the most competitive location for buyers as it has the best absorption rate of any submarket in Manhattan.(3) Mission successful executed condo construction loans for Walker Tower and 10 Sullivan Street. At the time, Walker Tower Penthouse was the most expensive condo sold in Midtown South for $50.9 million. 10 Sullivan was the tallest condo building in SoHo and is a landmark building known for its unique design and excellent location.
Midtown South Q1 2017 Condo Overview (3)
Annual Change
Sales
913
↓
-4%
Inventory
1788
↑
25%
Months of Supply
5.1
↑
18%
Days on Market
98
↑
20%
Median Price
$1.6M
↓
-6%
Average PPSF
$2,340
↑
10%
(1) The Villager: Union Square Tech Firms are Driving Areas Commercial Growth
(2) CBRE, The Real Deal, Commercial Observer
(3) The Corcoran Report 1Q17 Manhattan
MIDTOWN SOUTH OFFICE MARKET REPORT Q2-2017
“In the last few years there has been a lot of renovation and new construction… While the expansion of Manhattan’s tech industry is responsible for much of the gain, newer and updated product has also driven rents higher.” – Tristan Ashby, JLL director of New York Research
“What you’re seeing is just a more diversified market… The future of the world is everything is going to have a tech component. There’s a premium people are willing to pay to be there.”
– Mike Mathias, a leasing broker with Savills Studley Inc.
“A sign of a healthy city is activity in strong growth industries — and New York’s tech industry is certainly alive, well and growing in Union Square. With the area’s unrivaled transportation access and its vibrant mix of shops, restaurants, fitness studios and other amenities around Union Square Park, the district holds a lot of appeal for individuals who work in tech and creative industries… As Union Square’s community of tech, advertising, media and information companies has continued to grow, the district is leading the way in driving 21st-century job creation for New Yorkers.” – Jennifer Falk, executive director of the Union Square Partnership Business Improvement District.
“There are 60,000 people a day who cross Madison Square Park. I think that the renaissance of the park has been significant to this neighborhood.” – Brooke Kamin Rapaport, the senior curator at the Madison Square Park Conservancy
“Since its beginning, Union Square has offered New Yorkers a crossroads not only for transportation, culture, business and health but also for political discourse and free speech… Now with the planned new Civic Hall, Union Square will be able to also offer every New Yorker, regardless of background, gender, age, race or physical ability, access to digital skills, jobs and a renewed sense of civic engagement in the 21st century.”
– Andrew Rasiej, founder and C.E.O. of Civic Hall.
National Advisory Firm Procured Equity Partner for ABC Properties for New Acquisition Following the Sale of $25 Million Skyview-on-the-Hudson Debt to ABC in 1Q 2017
Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged approximately $20 million of equity financing for the acquisition of 146 rent-regulated condominiums at 733 Amsterdam Avenue, a luxury residential property in Manhattan. Jason Parker and Jeff Granowitz represented ABC Properties in bringing in a majority equity partner to facilitate the transaction with seller Starrett Corp. Mack Real Estate Credit Strategies also provided the buyers with a $55-million acquisition loan.
Constructed in 1971, the property — which is also identified as 175 West 95th Street — is a 27-story, 229-unit multifamily building. In 2015, the seller converted the building to condominiums and embarked on a significant capital improvements campaign, including refreshes to the entryway, terraces and common areas. With these enhancements, the property has been transformed into a premier luxury residence, which also features a 24-7 doorman/concierge, a newly-built fitness center, a children’s play space and a lounge.
ABC’s plans for the property include additional capital improvements to both common areas and apartment interiors.
“Our client, Myles Horn of ABC Properties, was seeking to acquire this well-appointed property with significant upside, and we were able to run an exclusive JV equity process in a very short timeframe to bring in a partner that would enable him to move forward with the transaction,” stated Granowitz.
In a separate transaction acquired by ABC Properties in the first quarter of 2017, Mission Capital advised the seller of the $25 million non-performing loan secured by the co-op shares relating to 262 apartments at Skyview on the Hudson in Riverdale, NY.
“Mission had a great experience with ABC on both transactions,” added Parker. “Myles and ABC have consistently been able to execute their value-add business plan and unlock the hidden potential of condominium properties. This is a trophy-type property in one of New York’s most attractive neighborhoods, and Myles recognized the significant potential that this condo package presented.”
[Published by Connect Media:]
Connect Media is pleased to announce the winners of our first annual Next Generation Awards.
We chose 25 young leaders throughout the U.S. who are already making big contributions and are likely to be influential in our industry for a long time — because of their talent, drive and fresh ideas. We picked these winners from more than 150 nominations sent in by our readers from all parts of the country and from all sectors of the commercial real estate industry — from architecture to development to finance and property sales.
After careful consideration (and some spirited deliberations), we recognized five young leaders from each of the three areas covered by our regional newsletters: California, Texas and New York. We chose another 10 National winners covering the rest of the country.
Chesapeake Square Mall, an 28-year-old enclosed mall with several anchors, is for sale.
The Loan and Asset Sales Group of Mission Capital Advisors is marketing the property as a repositioning play. It was turned over to a special servicing company in 2015 and sold back to the lender following a foreclosure sale in April 2016. At the time of the sale, the balance on the loan was $60.1 million, according to a report from Trepp.
CHESAPEAKE, Va. (WAVY) — Chesapeake Square Mall is for sale.
Both the mall and the Cinemark Theater next to it are listed as properties for sale on the Mission Capital Advisors website.
The Target store is not listed as part of the sale.
Chesapeake Square has suffered from lack of stores and the departure of anchors like Macy’s and Sears over the last several years. However, it was recently announced that three new businesses will be opening at the mall.
Chesapeake Square Mall, an 28 year old enclosed mall with several anchors, is for sale.
The Loan and Asset Sales Group of Mission Capital Advisors is marketing the property as a repositioning play. It was turned over to a special servicing company in 2015 and sold back to the lender following a foreclosure sale in April 2016. At the time of the sale, the balance on the loan was $60.1 million, according to a report from Trepp.
“The asset, which retains a base of strong tenants, presents a unique opportunity to make use of a well located property in an affluent metropolitan area that is experiencing rapid growth,” Michael Britvan, a managing director with Mission Capital, said in a statement.
The offering includes nearly the entirety of the property, 613,809 square feet of the mall’s 760,420 square feet. Four of six anchor spaces are included, with tenants including Burlington Coat Factory and J.C. Penney. The other two anchor spaces, previously held by Macy’s and Sears, are vacant. Two additional anchor spaces are independently owned and occupied by Target and Cinemark XD, (a movie theater), and are not part of the mall that’s for sale.
The entire mall contains about 100 stores, restaurants and kiosks, and a 10unit food court. Some of the tenants include Foot Locker, Bath & Body Works, Kay Jewelers, Lids and Mrs. Fields. Overall, the offered space is 58 percent occupied.
Most recently renovated in 1999, the mall is a single level property that opened in October 1989. It’s located at 4200 Portsmouth Blvd., off I664 at the intersection of Portsmouth Boulevard and Taylor Road.
The mall’s location and the region’s demographics are drawing interest from investors, Britvan told Virginia Business.
Chesapeake, with a population of 238,000, is part of a metropolitan area of more than of 1.7 million people, which is home to several major military institutions and bases. “…the immediate submarket surrounding the mall includes affluent suburbs along Portsmouth Boulevard,” added Britvan. “With its in place cash flow and potential for redevelopment we expect to see a lot of interest in this asset.”
Britvan said there is no list price per say for the mall. With retail closures and bankruptcies at an all time high in 2017, there are plenty of opportunities for investors. “You get it at an attractive basis, that allows you to do some creative things and to maximize value going forward,” he said.
“One of the things that kept sticking out, as we did our diligence, is how strong of a market this is. It has numerous strong employers, the military, above U.S. average income …There’s nearby retail, nearby single family development, so that bodes well compared to some of the dead and dying malls we see in more rural markets,” Britvan said. “It’s about as good as a demographic as one could ask for.
The offer date for the mall is Aug. 15. “Right now our target, the folks who are looking at us, are a wide class of investors — from local owners and operators to national players that are targeting stressed and underperforming mall assets across the country. There are some institutional players as well,” Britvan said.
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